For the first time since the advent of Inflation targeting era (2015), Inflation rate in India breached the permissible limit (+/- 4%) set by Monetary Policy Committee.
The Ministry of Statistics released the figures for December, 2019 which shows Retail Inflation to be around 7.35%.
This was mainly driven by high food Inflation, which stood at 14.12% from 10% in November, 2019. The vegetable Inflation (60.5%), which is mostly seasonal, is behind the spike in food Inflation.
The core Inflation remained steady at 2.6% citing the subdued domestic demand.
